Starting a business is no easy feat, and it comes with many associated costs. For new businesses to thrive, the owners need to make decisions about how they are spending their money to ensure they have working capital for all of the expenses required. While building your revenue-generating infrastructure, your investment capital needs to be liquid. Leasing your equipment can play a major role in freeing up cash flow that allows your business to afford other expenses. The benefits of equipment leasing continue on as your business grows, with tax benefits and opportunities for equipment upgrades to ensure customer satisfaction. Here are some of the benefits of equipment leasing for your start-up.
1. Optimize Cash Flow. Starting up a business requires a lot of liquid capital and purchasing your company equipment outright can be severely limiting. When you lease your equipment, you save your working capital to optimize your cash flow for other expenses, such as rent, employee payments, marketing, investments, and more. Leasing your commercial equipment offers a more affordable way to acquire the assets you need so that you can afford your day-to-day business expenses even when your new company is in its first several months of operation.
2. Flexible Payment Plans. Most leasing companies will have a variety of payment plans to choose from with a range of contract terms. A great equipment leasing company will offer you customized terms and payment dates and will work with you to determine which solution is best for your company.
3. Utilize Equipment Immediately. There are many expenses associated with starting a business and the first several months are some of the hardest. Revenue just begin coming in, so if you need equipment for your business to operate, you may not be able to afford the top of the line equipment until after several months of being open, but by then you’ve already bought equipment and it’s too late to upgrade without suffering losses. With a leasing company, you can avoid this problem. By leasing equipment and paying monthly fees instead of one upfront payment, you can afford to have high-quality assets in place as soon as you open your doors, optimizing your revenue potential right from the start. This ability to use the highest quality equipment from the start is an invaluable asset to your company as it will deliver the best results to your clients and can help you create a reputable image as soon as operations begin.
4. Upgrade Equipment. Since the equipment you lease is on a set-time contract, when that contract is over you can sign a new contract with new equipment. This allows you to constantly upgrade your equipment to the newest technology available without having to suffer the loss of selling equipment that has depreciated in value.
5. Tax Benefits. When you lease equipment for your business, it provides your company with tax-deductible benefits against your lease payments since the leased equipment is registered as leasing assets instead of purchased assets. For a start-up company in its first year, these tax benefits are invaluable.
If you’re running a start-up, leasing your equipment will benefit you not only as your business makes its debut, but also as you continue to grow your client base and become established. At First Capital Leasing, our team of dedicated and experienced professionals will work individually with each customer to custom tailor your lease to align with your receivables and to find the right financing option for your business. Based out of Calgary, Alberta, First Capital Leasing has over 85 years of combined experience and offers both prime and non-prime rates to companies across Canada. Don’t start your business on your own; contact First Capital Leasing at 1-888-251-3644 or fill out the online contact form and partner with a team that’s dedicated to your success.
Q: How do I start the application process with First Capital Leasing?
A: Simply fill out this one-time online application form to partner with us for your financial solutions.
Q: Can I deal with more than one supplier on a lease?
A: Yes, you can. It is possible for you to have many suppliers on one lease, as well as many different types of equipment.
Q: What Type of Equipment Can Be Financed?
A: First Capital Leasing offers the flexibility to finance any type of equipment that you require for your business. Some of the types of equipment we can lease include, but are not limited to:
We'd love to have the opportunity to understand your business and develop a strategy customized to your business' short-term needs and long-term goals. We boast a 95% approval rate through our vast network of underwriters (including a robust private portfolio).
Contact us at 1-888-251-3644 or complete the online contact form below. We look forward to connecting with you.